Summary

Clever use of Buy to Let mortgage plus capital raise to fund purchase

Client no longer in employment wishing to purchase £1.2m property

Receives income only from fully owned rental property

Our client

Our new client, referred to us by an existing client, was a professional woman with a long history of working in Mergers and Acquisitions earning a substantial income of well over 6 figures.

During the Covid pandemic our client took the bold decision to cease working to focus on spending time with her two children.  As a single mum she’d found it difficult in the past managing her demanding work with caring for her family.

What was needed?

The client, no longer in paid employment, was looking for a mortgage to purchase a property for herself and her family.

What was the challenge?

The client no longer received an income from paid employment and the only income she had was rental income from a Buy to Let property she owned outright.

The purchase price of the property she wanted to buy was £1.2m, and the client wasn’t very optimistic about her chances of securing this property because she knew she needed an income to get a mortgage.

How we provided the solution

Jerome Fick Executive Director, understood the challenges around achieving his client’s mortgage goals and using his experience and contacts determined a way these could be achieved. Jerome negotiated a Buy To Let mortgage plus capital raise. Instead of applying for a mortgage on the client’s purchase property, Jerome raised a £685,000 Buy to Let mortgage on the client’s Buy to Let property. The remaining cash for the purchase came from the client’s very healthy investment portfolio that she’d developed when she was working. The client used the monies raised on her Buy to Let property, plus the money from her investment portfolio, to buy her new property in cash.

In essence Jerome negotiated a Buy To Let remortgage plus capital raise, to fund the purchase.

The client was overjoyed with the outcome as she was now able to buy the family home she wanted.

What was the rate?

The rate was 1.76%